Elvira owns an office building, and Jared Partnership owns an apartment building. Each property is encumbered by a mortgage. Elvira and Jared Partnership agree to exchange their properties and mortgages, with any difference to be paid in cash. The fair market values, mortgages, and adjusted bases for the properties are as follows:

a. Write a letter to Elvira explaining who will have to pay cash to complete the exchange, the amount of her gross selling price, and the amount of gain or loss she will realize on the exchange.
b. Write a letter to Jared Partnership explaining who will have to pay cash to complete the exchange, the amount of the gross selling price of its property, and the amount of gain or loss it will realize on theexchange.

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Jared Partnership l'air market valuue Mortgage debt Adjusted basis Elvira's Building $220,000 80,000 100,000 Building $250,000 150,000 175,000